Volkswagen delays Ontario EV battery plant production to 2029, citing market uncertainty
PowerCo Canada, a Volkswagen subsidiary, is pushing back production start at the $7 billion St. Thomas facility by two years to align with technology and market changes.
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Volkswagen subsidiary PowerCo Canada has delayed production at its planned battery plant in St. Thomas, Ontario until 2029, pushing back the original timeline by two years to respond to evolving market demand and technological advances.
The facility, announced in 2023, carries a $7 billion price tag and is backed by $700 million in federal funding and $500 million from Ontario. PowerCo said the delay allows time for next-generation battery technology development and provides flexibility to scale production as market conditions evolve.
Joel Karlsberg, chief procurement officer for PowerCo Canada, said the decision was "about getting the pacing right … to protect our long-term investment (and) support regional jobs."
Canadian construction firm EllisDon Corp. has been selected as general contractor. The next phase of work will focus on core infrastructure and structural development.
The source material does not specify what the original planned production start date was before this 2029 delay, nor does it state current employment at the site or projected job numbers once production begins. The delay comes as the EV sector faces global uncertainty around demand, pricing, and supply-chain competition.
What was PowerCo's original planned production start date before this delay?
How many jobs does PowerCo project the plant will create once production begins?
We'll update this story as answers emerge.
The facts
Where is Volkswagen's delayed battery plant located?
The facility is located in St. Thomas, Ontario.
When will production start at the PowerCo Canada battery plant?
Production is now scheduled to begin in 2029, delayed by two years from the original timeline.
How much is the St. Thomas battery plant expected to cost?
The facility carries a $7 billion price tag, with $700 million in federal funding and $500 million from Ontario.
Who is the general contractor for the project?
Canadian construction firm EllisDon Corp. has been selected as general contractor.
